Nigeria: CBN Imposes Daily Cash Transaction Limit of N100,000 for POS Agents

The Central Bank of Nigeria (CBN) has introduced a daily cash transaction limit of N100,000 per customer for Point-of-Sale (POS) agents as part of its efforts to bolster Nigeria’s cashless policy.

The directive, issued in a statement dated December 17, 2024, and signed by Oladimeji Taiwo on behalf of the Director of the Payments System Management Department, mandates immediate compliance by Deposit Money Banks, Microfinance Banks, Mobile Money Operators, Super-Agents, and other relevant stakeholders. The policy is designed to enhance electronic payment adoption, reduce fraud, and improve agency banking operations.

New Limits for POS Agents

The CBN has outlined specific cash transaction limits for POS agents, which include:

• Daily Cash Withdrawal per Customer: Maximum of N100,000.
• Agent Daily Cumulative Cash-Out Limit: Limited to N1.2 million.
• Weekly Cash Withdrawal per Customer: Restricted to N500,000.

“All principals of agents are required to comply with these directives immediately,” the statement stressed. To ensure uniformity and adherence, agency banking operations must be conducted solely through float accounts maintained with the principal institutions.

Measures to Ensure Compliance

The CBN has introduced several measures to facilitate compliance with the new policy, including:

1. Use of Approved Agent Code:
   • POS agents must use Agent Code 6010 to distinguish agent banking services from other merchant activities.
2. Monitoring Agent Accounts:
   • Principals are required to oversee all accounts linked to their agents’ Bank Verification Numbers (BVNs) to detect unauthorized transactions.
3. Integration with Payment Terminals:
   • Banking terminals must connect to the Payments Terminal Service Aggregator (PTSA) for transparency and operational efficiency.
4. Daily Reporting:
   • Agents must submit daily reports detailing transaction volumes, withdrawal limits, and float account balances to the Nigerian Inter-Bank Settlement System using the CBN’s prescribed reporting template.

Penalties for Non-Compliance

The apex bank warned that failure to adhere to the directive would attract strict penalties, including monetary fines and administrative sanctions. Principals of agency banking operations will be held accountable for any violations their agents commit.

Monitoring and Enforcement

To ensure full implementation, the CBN plans regular monitoring and backend configuration checks to identify non-compliance and address operational challenges in agent banking. These efforts aim to improve electronic payment adoption and prevent fraudulent activities within the financial system.

Advancing Nigeria’s Cashless Economy

The CBN urged all stakeholders to strictly adhere to the directives, emphasizing the importance of the measures in advancing Nigeria’s cashless economy. By streamlining agency banking operations and promoting electronic transactions, the CBN aims to safeguard the financial ecosystem and enhance its overall efficiency.